Tether (USDT) reached a new all-time high in market capitalization, crossing $151 billion in May 2025. According to CoinMarketCap, the company issued $2.5 billion worth of USDT in May. On May 15 alone, Tether added $1 billion to the USDT supply. Since January, the market cap has grown by $13 billion, a nearly 10% increase.
Analyst Axel Adler Jr stated,
“Over the past 20 days, $6 billion in cash has been injected into the market through newly issued USDT.”
This growing USDT supply adds significant liquidity to the crypto market./ X
Tether now controls 62.4% of the entire stablecoin market. Over $73 billion of the USDT supply exists on the TRON blockchain, which surpasses Ethereum in distribution volume. TRON now leads as the top platform for USDT issuance.
USDT Dominance Drops from 6% to 4.6% in One Month
While the USDT supply continues to rise, the USDT dominance (USDT.D) is dropping. As per TradingView, the USDT.D index fell from 6% in April to 4.6% in May. The metric shows USDT’s share of the total crypto market cap.
This decline in USDT dominance suggests that more USDT is being used to purchase other crypto assets. This includes Bitcoin, Ethereum, and various altcoins. Investors appear to be moving capital into risk assets rather than holding it in stablecoins.
Axel Adler Jr observed that a fall in Bitcoin’s dominance alongside a rise in Ethereum’s market share often reflects this type of liquidity flow. Part of the USDT supply is now rotating into altcoins.
TRON Hosts $73 Billion of USDT Supply, Beating Ethereum
TRON has emerged as the leading blockchain for USDT distribution. More than $73 billion worth of Tether circulates on TRON. This exceeds the USDT issued on Ethereum.
TRON’s transaction costs remain lower than Ethereum’s, which could explain the shift in preference. Most centralized exchanges also support TRON-based USDT, making it a practical choice for traders and institutions.
Tether remains the largest stablecoin in the market. Despite regulatory questions in past years, its growing USDT supply continues to support daily crypto trading volumes.
Combined USDT and USDC Dominance Declines
Another analyst, Cryptosahintas, studied both USDT dominance and USDC dominance (USDC.D). He compared these ratios to Bitcoin price charts. He stated,
“The dominance of Tether is gradually decreasing. I expect Bitcoin to continue its upward trajectory. Liquidity is slowly shifting toward riskier assets.”
This comment links the falling stablecoin market dominance with possible shifts in asset allocation. TradingView data confirms that both USDT.D and USDC.D have declined. These figures point to traders converting stablecoins into cryptocurrencies.
This decline in stablecoin market share shows that a larger portion of circulating capital may now be active in altcoins and Ethereum.
Tether Growth Didn’t Prevent Bitcoin Price Drop in Q1
Tether’s rising supply does not always lead to immediate market reactions. Between January and April 2025, the USDT supply rose from $137 billion to $144 billion. However, Bitcoin’s price fell from $110,000 to below $75,000 during that same time.
This shows that while USDT supply may add liquidity to the system, other factors can affect crypto prices. These include market sentiment, macroeconomic data, and large holder activity.
The USDT supply remains a key indicator of potential market liquidity. The USDT dominance rate, meanwhile, shows how much capital is being held versus deployed into active trades or investments.
